Centre To Set Up And Upgrade Two Lakh Micro Food Processing Units By FY25 With An Outlay Of Rs 10,000 Crore

As part of the Atma Nirbhar Bharat Initiative, the Ministry of Food Processing Industries (MoFPI) is implementing a Centrally Sponsored Scheme for setting up and upgradation of two lakh micro food processing enterprises.

The enterprises can be set up or upgraded through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crores.

In a written reply to a question in the Rajya Sabha, Union Minister of State for Food Processing Industries Prahlad Singh Patel on Friday (23 July) said, the Central Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) provides financial, technical and business support for these enterprises.

Moreover, MoFPI has been implementing Central Sector Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) since 2016-17 for the overall growth and development of the food processing sector processing of agro- products and thus increasing the income of the farmers.

The component schemes of PMKSY are Mega Food Park, Integrated Cold Chain and Value Addition Infrastructure, Creation and expansion of Food Processing and Preservation Capacities, Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward linkages, Food Safety and Quality Assurance Infrastructure, Human Resource and Institutions, Operation Greens.

Under component schemes of PMKSY, MoFPI provides mostly credit-linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up food processing or preservation industries.

These sanctioned projects are estimated to benefit about 34 lakh farmers on completion.

"In the evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme conducted by M/s NABARD Consultancy Limited (NABCONS) in the year 2020, it has been estimated that captive projects under the scheme have resulted in an increase in farm-gate prices by 12.38 per cent and each project is estimated to benefit more than 9,500 farmers," Ministry of Food Processing Industries said.

The minister said that so far, 792 projects out of a total of 818 projects have been approved for setting up food processing industries by the private sector with approved Grants in Aid of Rs 5,792 Crores.

The Government has approved the 'Production Linked Incentive scheme' for the Food Processing Sector with an outlay of Rs 10,900 Crore to support global food manufacturing champions and support Indian brands of food products in international markets.

Also, in the budget speech for 2021-2022, the Government has announced expanding the scope of the 'Operation Greens scheme' from Tomato, Onion & Potato (TOP) to 22 perishable products to boost value addition in agriculture and allied products and their exports.